Over the past month, Healthcare Services, Life Sciences, Biotech, and Medical Equipment subindustries have all outperformed the overall US market. Healthcare stocks are often seen as a smart hedge in inflationary times. Inflation or not, many small cap companies in the sector are releasing news and approaching potential catalytic events that could put them among the few big winners in the market this summer.
MEDICAL EQUIPMENT OUTPERFORMSMedical Equipment investors have seen positive returns this month. Several companies in the subindustry have news on the horizon that could add to these gains. Wearable Health Solutions, Inc. (OTCMKTS: WHSI) is one with an ‘ecosystem’ of new products and services set to release to its dealer networks in August. Included are WHSI’s 4G device, docking station and wrist bands, according to Peter Pizzino, president of WHSI, who also noted a “variety of bundled features of the new 4G mobile medical alarm” will be available as well.
This is WHSI’s latest innovation in the $30+ billion market of remote Virtual Care and patient monitoring solutions.
WHSI’s Catalyst is the 4G iHelp Max Device
Key to WHSI’s plans is its debut of the 4G iHelp Max personal care device. WHSI is positioning itself for a leadership position in the new 4G technology in the growing home security and home healthcare markets.
Research firm MarketsAndMarkets projects this market will grow at a CAGR of 38.2% to reach $117 billion by 2025.
As 3G devices are phased out, WHSI’s new 4G devices offer dealers and vendors next generation iHelp MAX™ 4G features. These include Wi-Fi, NFC (wireless data transfer) technology and Bluetooth 4.0 Low Energy.
WHSI Files For Up List, Seeks $5 Million From Capital Markets
WHSI is offering investors additional compelling reasons to add the company stock to Watch Lists. WHSI has filed its Form 10 with the SEC for an up list to the OTC: QB market.
WHSI’s strategy to become a fully reporting company to the SEC and up list to another trading exchange. The goal: increased visibility to the financial investment community. That also means increased access to the capital markets.
WHSI says it plans to raise $5 million in financing in various forms. The funds would be used to expedite the launch of its next generation mobile medical device. This would include its Lone Worker Program initiative.
WHSI Retains International Monetary (IM)
WHSI has also retained International Monetary (IM), a full service merchant banking and strategic advisory firm.
M. B. (Blaine) Riley, III, managing director and president of IM, says, “We will introduce the company to our nationwide brokerage network comprised of broker-dealers and investment banks focused on the micro-cap and small-cap sectors,” he said. “While on the investor relations side, we will direct a series of initiatives to the investment community for enhancing shareholder value and market awareness.”
WHSI is investing in R&D, exclusive and proprietary software and a new cloud-based portal for its 4G remote monitoring device.WHSI is offering the robust growth PERS market and its dealer innovation in 4G technology.
WHSI is integrating the newest technology, such as voice artificial intelligence (AI), into its existing Smart products. They offer call integration with Alexis and Google, telehealth-ready monitoring wearables plus AI, BlueTooth, IoT, Central Cloud Management, Backend As A Service (Baas) and more.
The timing is great for a company like WHSI, the global home healthcare market size was USD$198.78 Billion in 2021 and is expected to register a revenue CAGR of 8.3%, over the next five years according to the latest analysis by Emergen Research. Home healthcare market revenue growth is primarily driven by factors such as rising incidence of chronic diseases such as diabetes, cardiovascular disease, and hypertension and increasing technological advancements in-home healthcare products. Moreover, rising demand for telehealthcare services and virtual consultancy services for advice from healthcare experts without visiting clinics physically are some other factors driving revenue growth of the market.
Another company in the home healthcare market, OraSure Technologies, Inc. (NASDAQ: OSUR), a global leader in point-of-care and home diagnostic testing and sample collection technologies, announced that its OMNIgene®•GUT DNA and RNA product (OMR-205) is now available to gut microbiome researchers. The product allows for self-collection, stabilization, storage and transportation of both microbial DNA and RNA at ambient temperature for gut microbiome profiling. It is made by OraSure’s subsidiary DNA Genotek.
“This product gives researchers in the pharmaceutical, biotechnical, academic, and consumer products fields a valuable tool to gain insight into the gene expression of gut microbes,” said Kathleen Weber, President of Molecular Solutions for OraSure Technologies. “It also aligns with our multiomics strategy and the recent launch of metatranscriptomic sequencing and analysis services for gut microbiome samples performed by Diversigen, another OraSure subsidiary.”
VACCINE STOCKS ON FIRE THIS WEEK
INOVIO (NASDAQ: INO), a biotechnology company focused on developing and commercializing DNA medicines, and other vaccine stocks were buoyed Monday after the The World Health Organization declared the monkeypox outbreak a global health emergency, sounding the highest level of alarm as cases continue to rise globally.
The macro news coincided with a fantastic announcement from the company last week, highlights included changes expected to reduce operational expenses and extend the company’s cash runway into third quarter of 2024 and improving cost structure that will allow the company to focus on strategic priorities, including heterologous boost strategy for COVID-19 vaccine candidate and HPV programs.
The reorganization, which includes an 18% workforce reduction in full-time employees and 86% reduction in contractors, along with other cost-saving measures, is expected to reduce operating expenses by approximately 30% over the next 18 months and will extend the Company’s cash runway into the third quarter of 2024. These projections do not include any funds that may or may not be raised during the time period through the Company’s existing ATM or other fundraising mechanisms. INOVIO expects a one-time restructuring charge of approximately $1.6 million in the third quarter of 2022.
“The organizational adjustments we’ve announced today underpin our strategy to realize the promise of DNA medicines and better position INOVIO for future growth,” said Dr. Jacqueline Shea, Chief Executive Officer. “By driving operational efficiencies throughout our organization, we are focused on advancing our lead pipeline candidates toward commercialization and optimizing our chances of success.”
INOVIO’s lead programs include its heterologous boost strategy for its COVID-19 vaccine candidate, INO-4800, and its HPV-targeted programs. INOVIO expects to have data readouts from key studies that will further inform the strategic development of these leading DNA medicine assets later this year.
OTHER SMALL CAP HEALTHCARE STOCKS IN THE NEWS
Community Health Systems (NYSE: CYH) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2022. This widely-known consensus outlook gives a good sense of the company’s earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
Community Health Systems, Inc. is one of the nation’s largest healthcare companies. The Company’s affiliates are leading providers of healthcare services, developing and operating healthcare delivery systems in 48 distinct markets across 16 states. CHS subsidiaries own or lease 83 affiliated hospitals with 13,000 beds and operate more than 1,000 sites of care, including physician practices, urgent care centers, freestanding emergency departments, occupational medicine clinics, imaging centers, cancer centers and ambulatory surgery centers.
Insider transactions on their own are no big deal, however, when several insiders are buying, like in the case of HeartBeam, Inc. (NASDAQ:BEAT), it is a good sign. The Independent Director Marga Ortigas-Wedekind made the biggest insider purchase in the last 12 months. That single transaction was for US$54k worth of shares at a price of US$5.99 each. That means that even when the share price was higher than US$1.48 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it’s very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While HeartBeam insiders bought shares during the last year, they didn’t sell. They paid about US$5.30 on average. I’d consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Start your research on WHSI now:https://topnewsguide.com/wearable-health-solutions-inc-whsi-profile/
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